American Business and Older EmployeesA Focus on Midwest Employers 5 Employee Qualities Most Top Qualities of Employees Desired Overall Ages 50+ (According to HR Managers, n=679) (According

American Business and Older Employees:A Focus on Midwest Employers

AcknowledgementsInternational Communications Research (ICR) of Media,Pennsylvania, collected the data for this study. AARP’s EconomicSecurity team made this study possible. The following members ofAARP’s staff served on the project advisory team:Deborah Russell, Economic SecuritySara Rix, Public Policy InstituteJeff Love, Strategic Issues ResearchJanet C. Lane, CommunicationsShelley Buckingham, CommunicationsDavid Nathan, Communications

S. Kathi Brown, AARP Strategic Issues Research, prepared the report. For additional information, contact S. Kathi Brown at 202-434-6296.

Contents3 Introduction

3 Methodology

4 Findings

14 Conclusions and Implications

16 Appendix I: Chicago HR Managers

26 Appendix II: Annotated Questionnaire

55 Appendix III: Detailed Description of Methodology

Introduction

As baby boomers leave the

workforce, some companies may

find themselves facing a shortage

of younger workers with the

qualifications needed to replace

those who retire.

A Focus on Midwest Employers 3

1 Mitra Toosi, “Labor Force Projections to 2012: The Graying of the U.S. Workforce, ” Monthly LaborReview, February 2004.

2 2003 American Community Survey Public Use Mirco Sample (PUMS), U.S. Census Bureau.

As many businesses are aware, theU.S. workforce is growing older

due, in large part, to the aging of the 76 million baby boomers, the oldest ofwhom will turn 66 years old in 2012.According to the Bureau of LaborStatistics, almost one in five (19%) U.S.workers will be ages 55 or older in 2012,compared to only one in seven (14%) in2002.1 As baby boomers leave the work-force, some companies may find them-selves facing a shortage of younger work-ers with the qualifications needed toreplace those who retire.

In light of the increasingly importantrole that older workers will play in thenation’s economy over the next fewdecades, this survey assesses employerperceptions of 50+ workers and identifieswhat, if anything, employers have startedto do to attract and retain these workers.This study is the fifth in a series of studiesthat AARP initiated in 1985 in order toidentify, document, and track employer’sperceptions, policies, and practices thataffect older workers. Unlike the previoussurveys in this series, which were nationalin scope, this most recent survey focuseson employers in Illinois and four sur-rounding Midwestern states that togetherhave approximately 2.6 million 55+ work-ers.2 Because Chicago will serve as thelocation of AARP’s Business Solutions foran Aging Society conference that will beheld in September 2005, the states closestto Chicago were chosen for inclusion inthis study.

Although this survey taps the opinionsand attitudes of employers in only fiveMidwestern states, the findings are largelyconsistent with findings from AARP’s earlier nationwide surveys of employers.For example, Midwestern employers, liketheir national counterparts, give olderworkers high marks in areas such as loyal-ty and dedication, commitment to doingquality work, dependability in a crisis,and ability to get along well with cowork-ers. However, Midwestern employers, likethose in the previous surveys, rate olderworkers somewhat lower on issues such as flexibility about doing different tasksand willingness to learn and use technolo-gy. While precise comparisons cannot be drawn between this survey and the ear-lier surveys due to the limited geographiccoverage of the most recent survey, simi-larities in the findings from thisMidwestern survey and the earlier nation-al surveys suggest that employer percep-tions of older workers may have changedlittle during the past two decades.

MethodologyThis study of senior-level humanresources (HR) executives and managersin Illinois, Iowa, Indiana, Wisconsin, and Missouri was conducted by telephonefrom April 6, 2005 to May 23, 2005. All interviews were conducted byInternational Communications Researchusing its Computer Assisted TelephoneInterviewing (CATI) system. The sample

source was Dunn and Bradstreet’s busi-ness list. Respondents were screened toensure that their companies had at least50 employees and that they were the sen-ior level individual responsible for makinghuman resource decisions on behalf oftheir company. For the general study, atotal of 679 interviews were completedwith senior-level HR decision makersacross these five states.

In addition to the interviews conductedfor the general study, companies based inthe Chicago metropolitan area were over-sampled in order to gain more insight intothe perceptions of HR decision makers inthis important business center. As a resultof the Chicago-area oversample, a total of219 interviews were completed in Chicago.

The margin of error for the general studyis +/- four percentage points at the 95 per-cent confidence interval, and the marginof error for Chicago respondents is +/-seven percentage points at the 95 percentconfidence interval. The overall resultshave been weighted by industry type,company size, and state to ensure thatthey are representative of the populationcounts in the Dunn and Bradstreet data-base. (See Appendix III for further infor-mation about sampling and weighting.)

FindingsPerceptions of 50+ EmployeesAmong the 19 employee qualities exam-ined in this survey, employees ages 50+receive high ratings on each of the fivequalities that HR managers in theMidwest deem most essential in employ-ees of any age. These qualities are com-mitment to doing quality work, ability toget along with co-workers, loyalty and

dedication to the company, dependabilityin a crisis, and willingness to be flexibleabout doing different tasks. In fact, ofthese five most desirable employee quali-ties, all but one are also among the topfive qualities of employees ages 50+. And,even on the attribute that is not among thetop five qualities of employees 50+ —will-ingness to be flexible about doing differenttasks—workers 50+ still receive a fairly highrating.

Specifically, on a scale of 1 to 6, with “6”being excellent and “1” being poor,employees 50+ received an average ratingof close to “5” or higher on the followingqualities that employers deem particularlyimportant: loyalty and dedication to thecompany, commitment to quality work,dependability in a crisis, experience, abilityto get along with coworkers, and individ-ual initiative. Although employees 50+received ratings that were closer to “4” onother important employee qualities suchas willingness to be flexible about doingdifferent tasks, willingness to learn and use new technology, willingness to try newapproaches to solving problems, willing-ness to participate in training or retrainingprograms, and having up-to-date jobskills, their average ratings on importantqualities always remained in the top halfof the 6-point scale and always were with-in one point of the quality’s importance,suggesting that employers for the mostpart feel that 50+ workers possess theemployee qualities that they view as particularly important.

4 American Business and Older Employees:


Employee Qualities Most Top Qualities of Employees Desired Overall Ages 50+(According to HR Managers, n=679) (According to HR Managers, n=679)

Rank Quality Rank Quality1 Commitment to doing quality work 1 Loyalty and dedication to

the company

2 Ability to get along with coworkers 2 Commitment to doing quality work

3 Loyalty and dedication to 3 Someone you can count on in the company a crisis

4 Someone you can count on in 4 Experience in the job and/a crisis or industry

5 Willingness to be flexible 5 Ability to get along with coworkersabout doing different tasks


3.4

4.0

3.7

4.1

4.4

4.8

3.9

5.3

3.7

4.0

4.4

4.0

4.4

4.7

4.3

5.3

5.5

5.1

5.4

2.4

3.0

3.4

4.2

4.2

4.3

4.3

4.4

4.5

5.0

5.0

5.0

5.1

5.1

5.2

5.3

5.4

5.5

5.8

1.0 2.0 3.0 4.0 5.0 6.0

Willingness to travel

Comfortable with non full-timeemployment arrangements

Comfortable with nontraditionalwork arrangements

Creativity

Willingness to work long hours

Ability to supervise and/or lead

Desire to get ahead

Experience in the job and/or industry

Understanding of new technology

Willingness to learn and use new technology

Having up to date job skills

Willingness to try new approachesto problems

Willingness to participate in training orretraining programs

Individual initiative

Willingness to be flexible about doingdifferent tasks

Someone you can count on in a crisis

Loyalty and dedication to the company

Ability to get along with coworkers

Commitment to doing quality work

Mean Rating Evaluation of 50+ Importance

Human Resource Managers’ Ratings: Importance of Employee Qualitiesand Evaluation of 50+ Employees* (in order of importance) n=679

*Q6. Importance of each quality in an employee of any age on a scale of 1 to 6: 6 = absolutely essential, 1 = not too important. Q11. Evaluation of employees 50+ on a scale of 1 to 6: 6 = excellent, 1 = poor

The following chart illustrates these HR managers’ ratings of the importance of all 19 employee qualities as well as their evaluation of employees ages 50+ on each of these 19 qualities.


6%<50

50–55

56–60

61–70

71+

14%

17%

46%

11%

2%

5%

Don’t know

Refused

50%40%30%20%10%0%% of Respondents

Age at Which HR Managers Begin to Consider Someone an Older Employee* (n=679)

*Q2b. “At what age do you begin to consider someone to be an older employee?”

Perceived Advantages andDisadvantages of Employees 50+When asked to name the advantages ofemployees ages 50+, the majority of HRmanagers mentioned their knowledge,skills, or experience (70%) as well as theirstrong work ethic (52%). Additionally, justunder half of respondents (42%) men-tioned their sense of professionalism.

When HR managers were asked to namethe disadvantages of employees ages 50+,no single issue was mentioned by amajority. Just under one in five identifiedeach of the following: lack of flexibilityand adaptability to change (19%), healthproblems (18%), lower productivity (18%),

and lack of familiarity with new technolo-gy or unwillingness to learn new technol-ogy (13%).

Age at Which Someone is Considered an Older EmployeeWhen asked at what age they begin to con-sider someone to be an older employee,approximately half (51%) of HR managerseither said that they did not know or did notanswer the question. Of those who providedan age, the majority identified an agebetween 50 and 60. On average, respondentswho provided an age identified 57 as the ageat which they begin to consider someone tobe an older employee.

8.6

8.5

7.7

7.5

7.3

6.8

5.2

4.2

0.0 2.0 4.0 6.0 8.0 10.0

*Q5. “How important would you say each of the following issues is to your company? Please use a scale from 0 to 10 where 0 means the issue is not at all important and 10 means it is extremely important.”

Importance of Various Workforce Issues* (n=679)

Finding skilled employees

Training your current workforce

Developing programs to retain employees

Introducing new technologiesinto your workplace

Retraining your current workforce

Retaining institutional knowledge

The aging of the workforce

Providing more flexible work options

Importance (Mean Rating)


Important Workforce IssuesOf the eight workforce issues addressed inthis survey, HR managers consider findingskilled employees to be the most impor-tant issue facing their company today.Specifically, HR managers gave this anaverage rating of 8.6 on a scale from 0 to10. Training your current workforce (8.5) is viewed as the second most importantissue, followed by developing programs to retain employees (7.7), introducing newtechnologies into your workplace (7.5), and retraining your current workforce(7.3). Interestingly, the aging of the work-force received an average importance rat-ing of only 5.2 and was viewed as one ofthe two least important workforce issuesthat respondents were asked to rate.

Availability of Qualified WorkersMore than half of HR managers say thatit’s more difficult today than it was fiveyears ago to find qualified applicants formanagement and non-management positions. Specifically, 59% of respondentsindicated that it is either much more difficult or somewhat more difficult to find qualified applicants for managementpositions today compared to five yearsago. Furthermore, 58% of respondentsindicated that it is either much more difficult or somewhat more difficult to find qualified applicants for non-manage-ment positions today compared to fiveyears ago.


Likelihood of a Shortage of Qualified WorkersMore than half (58%) of HR managersbelieve that their companies are likely toface a shortage of qualified workers withinthe next five years. Close to one in five(18%) believe that a shortage is very likely,while two in five (40%) think that it issomewhat likely.

Differences by Industry and Company SizeHealth care organizations as well as largeremployers are more likely than othercompanies to anticipate a shortage ofqualified workers within the next fiveyears. The specific differences by industryand company size are as follows:• Health care organizations (84%) are

more likely than respondents in all ofthe other industry groups analyzed,including manufacturing (55%), educa-tion (55%), professional/business

Ability of HR Managers to Find Qualified Job Applicants,Today Compared to Five Years Ago* (n=679)

27%42%

18%6%

6%32%

40%18%

4%

40% 50%30%20%10%0%% of Respondents

Much easier

Somewhat easier

Somewhat more difficult

Much more difficult

Don’t know

ManagementPositions

Non-ManagementPositions

8%

Q7. “. . . As I read each type of applicant, based on your experience, please tell me whether it’s easier or more difficult to find that type of applicant today, compared to five years ago.”

10%

18%

40%

33%

25% 30% 35% 40% 45%20%15%10%5%0%% of Respondents

Very likely

Somewhat likely

Not too likely

Not at all likely

Likelihood Company Will Face Shortage of Qualified Workers in 5 Years* (n=679)

*Q8. “In your opinion, within the next five years, how likely is it that your company will face a shortage of qualified workers?”


services (58%), retail (59%), and finan-cial services (52%) to report that theircompany is very or somewhat likely to face a shortage within the next five years.

• Companies with 500 or more employees(73%) are more likely than companieswith 50-99 employees (57%) and compa-nies with 100-499 employees (55%) toreport that their company is very orsomewhat likely to face a shortage.

Perceived Effectiveness of VariousApproaches in Encouraging Use of 50+ WorkersWhen asked how effective they think eachof ten different approaches would be inencouraging their own companies tomore fully utilize workers ages 50+, HRmanagers in these five states indicate that the following practices would bemost effective: • Benefits packages targeted toward older

employees (83%)• Skill training for older employees (81%)• Educating managers about ways to uti-

lize older employees (79%)• Phased retirement—allowing older

employees to reduce their work sched-ules for a period of time prior to fullretirement (79%)

• Part-time work arrangements with continuation of benefits (78%)

• Increased availability of part-time work for older employees (76%)

Differences by Industry Responses varied by industry as follows:• Health care organizations (92%) and

financial services companies (92%) aremore likely than manufacturers (78%),educational organizations (75%), pro-fessional/business services firms (77%),and retailers (77%) to anticipate thatpart-time work arrangements with con-tinuation of benefits would be either

very or somewhat effective.• Retailers (85%) and manufacturers

(82%) are more likely than educationalorganizations (67%) to anticipate thateducating managers about ways to uti-lize older employees would be eithervery or somewhat effective.

• Retailers (64%) are more likely thanmanufacturers (45%) to think that part-time work arrangements without con-tinuation of benefits would be very orsomewhat effective.

• Health care organizations (93%) andfinancial services companies (93%) aremore likely than manufacturers (74%),educational organizations (72%), pro-fessional/business services firms (80%),and retailers (77%) to anticipate thatphased retirement would be very orsomewhat effective.

• Health care organizations (89%) aremore likely than professional/businessservices firms (75%) to think that benefitpackages targeted toward older employ-ees would be either very or somewhateffective.

• Financial services organizations (81%)are more likely than educational organi-zations (60%) to think that the targetedrecruitment of older persons would beeither very or somewhat effective.

• Health care organizations (75%) aremore likely than retailers (56%) to antic-ipate that opportunities for advance-ment for older employees would be very or somewhat effective.

• Health care organizations (90%) andfinancial services firms (90%) are morelikely than manufacturers (75%), educa-tional organizations (74%), and profes-sional/business services firms (72%) toanticipate that increased availability ofpart-time work for older employeeswould be very or somewhat effective.

41%

23% 58%

24% 55%

45% 33%

29% 47%

22% 48%

20% 49%

14% 54%

13% 37%

34% 45%

42%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%% of Respondents

Very Effective Somewhat Effective

Part-time work without benefits

Targeted recruitment

Opportunities for advancement

Tax incentives for hiring / training

Increased availability of part-time work

Part-time work with benefits

Phased retirement

Educating managers

Skill training

Targeted benefits packages

*Q13. “Here is a list of approaches that have been suggested to encourage companies to more fully utilize older employees. Please indicate how effective you believe each one would be in encouraging your company to more fully utilize older employees.”


Differences by Company SizeResponses varied by company size as follows:• Companies with 50-99 employees (74%)

are more likely than companies with500+ employees (63%) to anticipate thattax incentives for hiring and trainingolder employees would be very or some-what effective.

• Companies with 50-99 employees (86%)are more likely than companies with500+ employees (77%) to think that benefits packages targeted toward

older employees would be very or some-what effective.

Use of These Approaches When asked to indicate which of theseapproaches have begun to be implement-ed by their companies, approximately half of HR managers indicate that theircompanies have implemented the follow-ing approaches:• Opportunities for advancement for

older employees (55%)• Skill training for older employees (48%)

Perceived Effectiveness of Various Older Employee-Targeted Practices in Encouraging Companies to Utilize More Older Employees* (n=679)

55%

48%

46%

42%

39%

32%

30%

25%

18%

Older-Employee Targeted Practices Currently Implemented by Companies* (n=679)

0% 10% 20% 30% 40% 50% 60%

% of Respondents



Educating managers


Phased retirement



Skill training


*Q14. “Which, if any, of these approaches have begun to be implemented in your company, even a little?”


• Part-time work arrangements withoutcontinuation of benefits (46%)However, with the exception of skill

training for older employees, few HR man-agers indicate that their companies havebegun to implement the approaches thatthey anticipate would be most effective inencouraging their companies to morefully utilize older employees. For example,fewer than one in five (18%) companieshave begun to implement targeted bene-fits packages even though such packagesare viewed as the most effective approachfor encouraging their companies to morefully utilize older workers. Furthermore,fewer than two in five companies haveimplemented any of the other approachesdeemed to be most effective, such as educating managers about ways to utilize older employees (30%), offering

phased retirement (39%), and providingpart-time work arrangements with contin-uation of benefits (32%).

Differences by Industry Employers in certain industries were morelikely than others to report that they havealready implemented some of these prac-tices. However, the responses did not varyby company size. The specific differencesby industry were as follows:• Educational organizations (60%) and

financial services companies (62%) aremore likely than manufacturers (43%)and professional/business servicescompanies (41%) to indicate that theyhave implemented skill training forolder employees.


• Health care organizations (56%), profes-sional/business services companies(54%), and financial services firms(59%) are more likely than educationalorganizations (35%) and manufacturers(39%) to indicate that they have begunto offer part-time work arrangementswithout continuation of benefits.

• Health care organizations (56%) aremore likely than manufacturers (30%),educational organizations (21%), pro-fessional/business services firms (34%),and retailers (25%) to indicate that theyhave begun to implement part-timework arrangements with continuation of benefits.

• Health care organizations (49%), professional/business services firms(46%), and retailers (47%) are more likely than manufacturers (27%) andeducational organizations (17%) to indicate that they have begun to offerphased retirement.

• Educational organizations (34%) aremore likely than health care organiza-tions (17%), manufacturers (12%), pro-fessional/business services firms (19%),and retailers (14%) to indicate that theyhave begun to offer benefit packages tar-geted toward older employees.

• Health care organizations (62%), finan-cial services organizations (60%), retail

ers (49%), and professional/business services firms (47%) are more likely thanmanufacturers (29%) and educationalorganizations (26%) to have begun to offer increased part-time work for older employees.

Changes in Retirement Age andRehiring of Retirees

Perceived Change in Retirement AgeHalf (50%) of HR managers report that theaverage retirement age at their companieshas increased over the past five years, whileapproximately two in five (43%) indicatethat it has not increased.

Differences by Industry — Educationalorganizations are less likely than compa-nies in other industries to report that theaverage retirement age at their organiza-tion has increased. Specifically, all indus-try groups analyzed, including health care(62%), manufacturing (57%), profession-al/business services (54%), retail (52%),and financial services (61%), are morelikely than educational organizations(30%) to either strongly agree or some-what agree that the average retirementage at their organization has increasedwithin the past five years. Responses didnot vary significantly by company size.

18% 26% 23% 20% 7%

9% 25% 22% 37% 6%

Changes Observed Within Company Over The Past Five Years* (n=679)

0% 20% 40% 60% 80% 100%% of Respondents

Increase in returning retirees

Increase in retirement age

*Q15. “After I read each statement below, please indicate whether you strongly agree, somewhat agree, somewhat disagree, or strongly disagree: (a) Within the past five years, the average retirement age at my company has increased. (b) Within the past five years, an increasing number of my company’s retired employees have returned to work.”

Strongly agree

Somewhat agree

Somewhat disagree

Strongly disagree

Don’t know


Rehiring of RetireesThe majority (60%) of HR managers indicate that they have not experiencedan increase in retirees returning to workduring the past five years. Still, approxi-mately one third (34%) indicate that theircompanies have in fact experienced suchan increase.

Differences by Industry and Company Size — Companies in certainindustries are more likely than others toreport an increase in returning retirees.Specifically, health care organizations(45%) and educational organizations(45%) are more likely thanprofessional/business services companies(26%) to either strongly agree or some-what agree that an increasing number oftheir company’s retired employees havereturned to work within the past five years.Responses did not vary significantly bycompany size.

Conclusions and ImplicationsThe findings from this survey of senior-level HR managers and executives in fiveMidwestern states show that workers ages50+ represent a valued segment of theworkforce in those states. HR managersgive workers ages 50 and older high orfairly high ratings on the five employeequalities that they deem most essential inemployees of any age: loyalty and dedica-tion to the company, commitment to doingquality work, dependability in a crisis,ability to get along with co-workers, andwillingness to be flexible about doing dif-ferent tasks.

Although older workers receive particu-larly high ratings when it comes to loyaltyand dedication to the company, commit-ment to doing quality work, dependabilityin a crisis, ability to get along with co-

workers, and experience in the job and/orindustry, these workers are viewed some-what less favorably in the areas of willing-ness to be flexible about doing differenttasks, willingness to learn and use newtechnology, willingness to try newapproaches to solving problems, and will-ingness to participate in training pro-grams. Nonetheless, the majority of HRmanagers rate older workers favorably on these attributes.

These findings also reveal that fewemployers in these states have imple-mented approaches to attract and retainolder workers and even fewer believe thatthe aging of the workforce is important totheir companies. This is in spite of the factthat the vast majority of HR managersreport that finding skilled employees is a top issue for them and many anticipatethat their own companies may face ashortage of qualified workers within thenext five years.

Given the labor and skills shortages thatmany companies are likely to face as thebaby boomers retire and the workforceages, savvy employers should considertaking steps now to help prepare theircompanies for the aging of the workforce.Workers ages 50+ represent a viable solu-tion to many employers’ future workforceneeds. Companies that are interested inpreparing for this demographic shift byrecruiting and retaining experienced work-ers 50+ should consider the following:• Workers ages 50+ have diverse back-

grounds and needs.• Most 50+ workers want to learn new

skills and are open to training and newexperiences. According to a 2002 AARPsurvey, more than seven in ten (73%)workers ages 45-74 identified on-the-jobtraining as an absolutely essential partof their ideal job. Furthermore, nearly


nine in ten (88%) identified the opportu-nity to learn something new as anabsolutely essential part of that idealjob.3 Furthermore, in a 2003 AARP sur-vey, more than seven in ten workers 50-70 who plan to work during retire-ment indicated that being able to learnnew skills (72%) and having new experi-ences (74%) would be important to themwhen working in retirement.4

• Many older workers are open to changeand are willing to learn new technology.In fact, according to a 2005 study by Dr.Tracey Rizzuto of Louisiana StateUniversity, older workers in a Louisianastate agency exhibited more willingnessthan their younger counterparts to learnnew technology at work when theiroffice’s computer systems were upgrad-ed.5 Additionally, the number of olderAmericans who use the Internet continuesto rise, representing another indicatorof older adults’ increasing comfort withtechnology. For example, from 2000 to2002, the percentage of adults ages 50-64 with Internet access grew from 45%to 52% and the percentage of adults 65+with Internet access grew from 14% to18%, according to the Pew Internet &American Life Project.6

• Not all workers wish to retire by the ageof 65. A 2003 AARP survey found thatmore than two in three (68%) workersages 50-70 who have not yet retiredexpect to work in retirement or neverretire and more than two in five (45%)expect to continue working into their70s, 80s, or as long as they are able.7

• The experience and knowledge of 50+workers makes them a vital part of thenation’s economy. Their contribution to the economy is expected to increasemarkedly over the next few decades astheir numbers grow significantly fasterthan those of younger workers.8

• Employers who wish to avoid facing atalent shortage resulting from theimpending retirement of the baby boomgeneration should conduct an assess-ment of their existing workforce todetermine whether practices to attractand retain older workers are warranted.Many of the companies that have beenrecognized as AARP Best Employers forWorkers Over 50 have implementedpractices such as health benefits forpart-time workers, phased retirementprograms, retiree work opportunities,and flexible scheduling arrangements in an effort to appeal to older workers.9

3 AARP, Staying Ahead of the Curve: The AARP Work and Career Study, (Washington DC: AARP, 2002).4 AARP, Staying Ahead of the Curve 2003: The AARP Working in Retirement Study, (Washington DC:

AARP, 2003).5 Carol Kleiman, “Older Workers More Willing to Tackle Tech Changes,” Chicago Tribune, May 24, 2005.6 Pew Internet & American Life Project, The Ever-Shifting Internet Population, (Washington DC: The Pew

Internet & American Life Project, 2003).7 AARP, Staying Ahead of the Curve 2003: The AARP Working in Retirement Study, (Washington DC:

AARP, 2003).8 Mitra Toossi, “A Century of Change: The U.S. Labor Force, 1950-2050,” Monthly Labor Review,

May 2002.9 AARP, Staying Ahead of the Curve 2004: Employer Best Practices for Mature Workers,

(Washington DC: AARP, 2004).

Appendix I: Responses from Chicago HR Managers

When Chicago HR managers were asked

to name the disadvantages of employees

ages 50+, no single issue was identified

by a majority of respondents…


This appendix presents the findingsfrom the oversample of senior-level

HR managers and executives in theChicago metropolitan statistical area. A total of 219 individuals in the Chicagoarea were interviewed.

Chicago Respondents’ Perceptions of 50+ EmployeesAmong the 19 employee qualities exam-ined in this survey, employees ages 50+receive high ratings on each of the fivequalities that Chicago HR managers deemmost essential in employees of any age:commitment to doing quality work, abilityto get along with coworkers, someone youcan count on in a crisis, loyalty and dedi-cation to the company, and willingness tobe flexible about doing different tasks. Infact, of the top five most desirableemployee qualities, all but one are alsoamong the top five qualities of employeesages 50+. And, even on the attribute thatwas not among the top five qualities ofemployees 50+ — willingness to be flexibleabout doing different tasks — workers 50+still received a fairly high rating.

Employee Qualities Most Top Qualities of Employees Desired Overall Ages 50+(According to Chicago HR Managers, n=219) (According to Chicago HR Managers, n=219)

Rank Quality Rank Quality1 Commitment to doing quality work 1 Commitment to doing quality work

2 Ability to get along with coworkers 2 Loyalty and dedication to the company

3 Someone you can count on in 3 Someone you can count on ina crisis a crisis

4 Loyalty and dedication to 4 Experience in the job and/the company or industry

5 Willingness to be flexible 5 Ability to get along with coworkersabout doing different tasks

Specifically, on a scale of 1 to 6 with “6” being excellent and “1” being poor,employees 50+ received an average ratingof close to “5” or higher on the followingqualities that employers deem important:commitment to quality work, loyalty anddedication to their employer, dependabilityin a crisis, experience, ability to get alongwith coworkers, and individual initiative.Although employees 50+ received ratingsthat were closer to “4” on other importantemployee qualities such as willingness tobe flexible about doing different tasks, will-ingness to learn and use new technology,willingness to try new approaches to solv-ing problems, and willingness to partici-pate in training or retraining programs,their average ratings on important quali-ties always remained in the top half of the6-point scale and always were within onepoint of the quality’s importance, suggest-ing that Chicago HR managers for themost part feel that 50+ workers possessthe qualities that they view as importantin employees of any age.


The following chart illustrates these Chicago HR managers’ ratings of the importance of all 19 employee qualities as well as their evaluation of employees ages 50+ on each of these 19 qualities.

3.4

4.0

3.7

4.4

4.8

3.8

5.3

3.9

4.3

4.1

4.4

4.7

4.1

4.4

5.4

5.3

5.0

5.4

2.2

2.8

3.2

4.24.2

4.2

4.4

4.4

4.5

4.5

4.8

5.0

5.0

5.1

5.1

5.2

5.3

5.4

5.5

5.7

1.0 2.0 3.0 4.0 5.0 6.0

Willingness to travel

Comfortable with non full-timeemployment arrangements

Comfortable with nontraditionalwork arrangements

Creativity

Willingness to work long hours

Ability to supervise and/or lead

Desire to get ahead

Experience in the job and/or industry

Understanding of new technology

Willingness to learn and use new technology

Having up-to-date job skills

Willingness to try new approachesto problems

Willingness to participate in training orretraining programs

Individual initiative

Willingness to be flexible about doingdifferent tasks

Someone you can count on in a crisis

Loyalty and dedication to the company

Ability to get along with coworkers

Commitment to doing quality work

Mean Rating Evaluation of 50+ Importance

Chicago HR Managers’ Ratings: Importance of Employee Qualitiesand Evaluation of 50+ Employees* (in order of importance) n=219

*Q6. Importance of each quality in an employee of any age on a scale of 1 to 6: 6 = absolutely essential, 1 = not too important. Q11. Evaluation of employees 50+ on a scale of 1 to 6: 6 = excellent, 1 = poor


0%

8%<50

50–55

56–60

61–70

71+

11%

25%

39%

11%

2%

4%

Don’t know

Refused

40% 45%30% 35%20% 25%10% 15%5%% of Chicago Respondents

Age at Which Chicago HR Managers Begin to Consider Someone an Older Employee* (n=219)

*Q2b. “At what age do you begin to consider someone to be an older employee?”

Perceived Advantages andDisadvantages of Employees 50+When asked to name the advantages ofemployees ages 50+, the vast majority ofChicago HR managers (70%) mentionedtheir knowledge, skills, or experience.Additionally, nearly half of respondents(47%) mentioned their strong work ethic,and nearly two in five (38%) mentionedtheir sense of professionalism.

When Chicago HR managers were askedto name the disadvantages of employeesages 50+, no single issue was identified bya majority of respondents. Approximatelyone in five respondents identified each ofthe following: a lack of flexibility andadaptability to change (21%) and lowerproductivity (20%). Additionally, lack offamiliarity with new technology or unwill-ingness to learn new technology (12%)and health problems (11%) were eachmentioned by slightly more than one inten respondents.

Age at Which Someone is Considered an Older EmployeeWhen asked at what age they begin toconsider someone to be an older employ-ee, more than two in five (43%) ChicagoHR managers either said that they did not know or did not answer the question. Of those who provided an age, the majori-ty identified an age between 50 and 60.On average, respondents who provided an age identified 56 as the age at whichthey begin to consider someone to be anolder employee.

Important Workforce IssuesAmong the eight workforce issues addressed in the survey, Chicago HR man-agers consider finding skilled employees tobe the most important issue facing theircompany today. Specifically, respondentsgave this an average rating of 8.6 on a scalefrom 0 to 10. Training your current work-force (8.3) was viewed as the second mostimportant issue, followed by retrainingyour current workforce (7.3), introducing

8.6

8.3

7.3

7.2

7.2

6.6

5.2

4.0

0.0 2.0 4.0 6.0 8.0 10.0

*Q5. “How important would you say each of the following issues is to your company? Please use a scale from 0 to 10 where 0 means the issue is not at all important and 10 means it is extremely important.”

Importance of Various Workforce Issues to Chicago HR Managers* (n=219)

Finding skilled employees

Training your current workforce

Developing programs to retain employees

Introducing new technologiesinto your workplace

Retraining your current workforce

Retaining institutional knowledge

The aging of the workforce

Providing more flexible work options

Importance (Mean Rating)


new technologies into your workplace(7.2), and developing programs to retainemployees (7.2). Interestingly, the aging ofthe workforce received an average impor-tance rating of only 5.2 and was viewed asone of the two least important issues thatrespondents were asked to rate.

Availability of Qualified WorkersApproximately half of Chicago HR man-agers say that it’s more difficult today than it was five years ago to find qualifiedapplicants for management positions.Specifically, 52% of Chicago HR managersindicated that it is either much more diffi-cult or somewhat more difficult to findqualified applicants for managementpositions today compared to five yearsago. In contrast, only two in five (40%)believe that it’s much easier or somewhateasier today compared to five years ago.

When asked about their ability to findqualified applicants for non-managementpositions today compared to five yearsago, Chicago HR managers were equallylikely to report that finding qualifiedapplicants today is easier as they were to report that it is more difficult.Specifically, 48% perceive it as easiertoday while a statistically equivalent num-ber (46%) perceive it as more difficult.

Likelihood of Shortage of Qualified WorkersJust under half (48%) of Chicago HR managers believe that their companiesare likely to face a shortage of qualifiedworkers within the next five years. Closeto one in seven (14%) believe that a short-age is very likely, while about one in three(34%) think that it is somewhat likely.

Ability of Chicago HR Managers to Find Qualified Job Applicants,Today Compared to Five Years Ago* (n=219)

30%36%

16%6%

12%36%

33%14%

6%

40%30%20%10%0%

% of Chicago Respondents

Much easier

Somewhat easier

Somewhat more difficult

Much more difficult

Don’t know

ManagementPositions

Non-ManagementPositions

11%

*Q7. “. . . As I read each type of applicant, based on your experience, please tell me whether it’s easier or more difficult to find that type of applicant today, compared to five years ago.”

14%

14%

34%

38%

25% 30% 35% 40%20%15%10%5%0%


Very likely

Somewhat likely

Not too likely

Not at all likely

Likelihood Company Will Face Shortage of Qualified Workers in Five Years* (n=219)

*Q8. “In your opinion, within the next five years, how likely is it that your company will face a shortage of qualified workers?”



34%

30% 50%

47% 31%

30% 45%

23% 52%

30% 41%

24% 46%

31% 38%

11% 36%

45% 30%

Perceived Effectiveness of Various Older Employee-Targeted Practices in Encouraging Companies to Utilize More Older Employees* (n=219)

49%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%% of Chicago Respondents

Very Effective Somewhat Effective




Tax incentives for hiring/training



Phased retirement

Educating managers

Skill training


*Q13. “Here is a list of approaches that have been suggested to encourage companies to more fully utilize older employees. Please indicate how effective you believe each one would be in encouraging your company to more fully utilize older employees.”

Perceived Effectiveness of VariousApproaches in Encouraging Use of 50+ WorkersWhen asked how effective they think eachof ten different approaches would be inencouraging their own companies tomore fully utilize 50+ workers, ChicagoHR managers indicated that the followingpractices would be most effective: • Educating managers about ways to

utilize older employees (83%)• Skill training for older employees (80%)• Benefits packages targeted toward older

employees (78%)• Part-time work arrangements with con-

tinuation of benefits (75%)

• Increased availability of part-time workfor older employees (75%)

• The targeted recruitment of older per-sons (74%)

Use of These Approaches When asked to indicate which of theseapproaches have begun to be implement-ed by their companies, approximately halfof Chicago HR managers indicate thattheir companies have implemented thefollowing approaches:• Opportunities for advancement for

older employees (53%)• Skill training for older employees (53%)

o


However, with the exception of skilltraining for older employees, few HR man-agers in Chicago indicate that their com-panies have begun to implement theapproaches that they anticipated wouldbe most effective in encouraging theircompanies to more fully utilize olderemployees. For example, only about onein three (34%) Chicago-based companieshave begun to educate managers aboutways to utilize older employees.Furthermore, fewer than one in five (16%)have begun to offer benefits packages tar-geted to older employees and only aboutone in four (27%) offer part-time workwith benefits.

Changes in Retirement Age andRehiring of Retirees

Perceived Change in Retirement AgeApproximately half (51%) of Chicago HRmanagers report that the average retire-ment age at their companies hasincreased over the past five years, whilefewer than two in five (38%) indicate thatit has not increased.

Rehiring of RetireesWhen asked whether an increasing num-ber of their company’s retirees havereturned to work during the past fiveyears, the majority (60%) of Chicagorespondents indicate that they have notexperienced an increase in retirees return-ing to work. However, approximately onein four (28%) respondents indicate thattheir companies have in fact experiencedsuch an increase.

53%

53%

40%

39%

34%

32%

28%

27%

16%

Older-Employee Targeted Practices Currently Implemented by Chicago Companies* (n=219)

0% 10% 20% 30% 40% 50% 60%% of Chicago Respondents



Educating managers


Phased retirement



Skill training


*Q14. “Which, if any, of these approaches have begun to be implemented in your company, even a little?”


Key Differences: Chicago HR Managersvs. Midwest HR Managers Outside of ChicagoFor the most part, Chicago HR managersand HR managers across this five-statearea report similar perceptions of workersages 50+, with both groups giving theseworkers high or above average ratings onthe employee qualities that they considermost important. However, a few key dif-ferences existed between the responses ofChicago HR managers and HR managersin areas other than Chicago. These differ-ences are as follows:• Although Chicago HR managers and HR

managers outside of Chicago reportedsimilar levels of difficulty in findingqualified applicants today for

management positions, HR managers inChicago were less likely than HR man-agers outside of Chicago to report that itis more difficult now than five years agoto find qualified applicants for non-management positions.

• Although nearly half of Chicago HRmanagers report that their companiesare likely to face shortages of qualifiedworkers within the next five years, HRmanagers in Chicago were less likelythan HR managers outside Chicago toanticipate such shortages.

18%26%26% 20% 10%

9% 20% 22% 38% 11%

Changes Observed Within CompanyOver The Past Five Years* (n=219)

0% 20% 40% 60% 80% 100%


Increase in returning retirees

Increase in retirement age

*Q15. “After I read each statement below, please indicate whether you strongly agree, somewhat agree, somewhat disagree, or strongly disagree: (a) Within the past five years, the average retirement age at my company has increased. (b) Within the past five years, an increasing number of my company’s retired employees have returned to work.”

Strongly agree

Somewhat agree

Somewhat disagree

Strongly disagree

Don’t know


• When asked to name the advantagesand disadvantages of workers 50+, theresponses of HR managers in Chicagoclosely mirrored those of HR managersoutside of Chicago, with the vast major-ity identifying these workers’ knowl-edge, skills, or experience as advan-tages. The one significant differencebetween HR managers in Chicago andthose outside Chicago was that ChicagoHR managers were significantly less

likely than HR managers outsideChicago to identify health problems as adisadvantage of workers 50+.

• Although the majority of respondentsbelieve that phased retirement would beeffective in encouraging their compa-nies to more fully utilize older workers,HR managers in Chicago were less likelythan HR managers outside Chicago tofeel this way.

Appendix II:AnnotatedQuestionnaire

Employment Characteristics

1. Excluding contract or contingent employees, approximately how many full-time employees does your company have in all locations in the United States?

50–99 100–499 500–999 1000 or more DonÕt know RefusedGeneral 44 41 7 8 – –Sample (n=679)Chicago 44 41 5 10 – –Oversample(n=219)

2. Excluding contract or contingent employees, approximately how many part-time employees does your company have in all locations in the United States?

Less than 50 50–99 100–499 500–999 1000 or more Don’t know Refused

General 76 7 9 2 3 2 –Sample (n=679)

Chicago 80 6 9 2 3 * –Oversample(n=219)

2b. At what age do you begin to consider someone to be an older employee?<50 50–55 56–60 61–70 71+ Don’t know Refused

General 6 17 14 11 2 46 5Sample (n=679)

Chicago 8 25 11 11 2 39 4Oversample(n=219)


This annotated questionnaire shows the distribution of responses to each question inthe survey. Responses are shown as percentages and have been weighted by com-

pany size, industry, and state to represent the population counts in the Dunn &Bradstreet database that served as the sample source for this study. All percentages havebeen rounded to the nearest percentage point and, due to rounding, may not appear toadd up to 100%.

Employment Characteristics — continued3. Approximately what percentage of your company’s workforce across all locations

in the United States is:

a. Age 50 or older0–24% 25–49% 50% or more Don’t know Refused

General 42 36 12 11 –Sample (n=679)Chicago 45 38 8 8 –Oversample(n=219)

b.Younger than age 50

0–24% 25–49% 50% or more Don’t know RefusedGeneral – 2 87 – –Sample (n=679)Chicago 1 5 86 8 –Oversample(n=219)

4. Deleted before Fielding


Employment Issues

5. How important would you say each of the following issues is to your company? Please use a scalefrom 0 to 10 where 0 means the issue is not at all important and 10 means it is extremely impor-tant. How important an issue to your company is (INSERT):

a. The aging of the workforceGeneral Sample Chicago Oversample

(n=679) (n=219)Top 3 Box (NET) 24 2410 Extremely important 8 1409 5 508 12 507 11 1506 11 705 19 1604 6 703 8 7Bottom 3 Box (NET) 21 2302 6 601 4 400 Not at all important 11 13Don’t know 1 –Refused * *

b. Training your current workforceGeneral Sample Chicago Oversample

(n=679) (n=219)Top 3 Box (NET) 77 7410 Extremely important 39 4109 16 1108 22 2107 12 1206 4 605 5 404 1 203 1 2Bottom 3 Box (NET) * 102 * 101 – –00 Not at all important * *Don’t know – –Refused – –



Employment Issues — continued

c. Providing more flexible work options such as telecommuting, part-time work,or contract or contingent work

General Sample Chicago Oversample(n=679) (n=219)

Top 3 Box (NET) 12 1010 Extremely important 4 509 1 208 7 407 12 906 9 705 18 2104 7 1003 9 7Bottom 3 Box (NET) 31 3502 9 901 9 1000 Not at all important 13 16Don’t know 1 –Refused * –

d./e. Deleted before fielding

f. Finding skilled employeesGeneral Sample Chicago Oversample

(n=679) (n=219)Top 3 Box (NET) 80 8210 Extremely important 46 5009 15 1208 19 2007 10 706 3 *05 5 604 1 203 1 1Bottom 3 Box (NET) 1 202 1 *01 * 100 Not at all important * *Don’t know * –Refused — –


g. Developing programs to retain employeesGeneral Sample Chicago Oversample

(n=679) (n=219)Top 3 Box (NET) 63 5610 Extremely important 26 2609 14 1108 23 1907 13 1206 5 705 10 1204 4 303 1 3Bottom 3 Box (NET) 4 702 2 201 1 –00 Not at all important 1 6Don’t know * –Refused – –

h. Retraining your current workforceGeneral Sample Chicago Oversample

(n=679) (n=219)Top 3 Box (NET) 54 5610 Extremely important 23 2809 13 1308 17 1507 15 1306 8 705 12 904 4 603 2 3Bottom 3 Box (NET) 5 602 2 101 * –00 Not at all important 2 4Don’t know * –Refused – –


i. Introducing new technologies into your workplaceGeneral Sample Chicago Oversample

(n=679) (n=219)Top 3 Box (NET) 60 5110 Extremely important 20 2009 13 708 27 2307 16 1706 6 905 10 1504 2 303 2 2Bottom 3 Box (NET) 3 302 1 101 * –00 Not at all important 2 2Don’t know – –Refused – –

j. Retaining institutional knowledge when workers retire or leaveGeneral Sample Chicago Oversample

(n=679) (n=219)Top 3 Box (NET) 48 4610 Extremely important 17 1709 8 608 23 2207 14 1306 4 505 13 1704 5 103 4 4Bottom 3 Box (NET) 7 1102 3 501 1 200 Not at all important 3 5Don’t know 4 4Refused – –

6. I’m going to read a list of employee qualities. Please rate how important you believe each one iswith respect to the kind of people your company values and likes to have as employees. You willnotice that most of these are desirable and important qualities, so please keep in mind the uniqueneeds and culture of your specific company. Please rate each quality by using a scale of 1 to 6,where 6 means it is absolutely essential to you and your company and 1 means not too importantto you and your company and the other numbers represent levels in between. In other words, thehigher the rating the more important it is. For example, as an employee quality, how important is(INSERT)...?

a. Individual initiativeEssential Not important

NET 6 Absolutely 5 4 3 NET 2 1 Not too important Don’t know Refused

General 78 37 41 16 5 1 * 1 – –Sample (n=679)

Chicago 80 37 43 15 4 2 1 1 – –Oversample (n=219)

b. Commitment to doing quality workEssential Not important


General 98 80 18 2 * – – – – –Sample (n=679)

Chicago 96 74 22 4 * – – – – –Oversample (n=219)

c. Desire to get aheadEssential Not important


General 48 19 29 28 19 6 4 2 – –Sample (n=679)

Chicago 44 25 19 31 20 5 3 2 * –Oversample (n=219)


Question 6 — continued

d. Willingness to be flexible about doing different tasksEssential Not important


General 80 45 35 14 3 2 2 1 – *Sample (n=679)


e. Experience in the job and/or industryEssential Not important


General 51 21 30 27 14 7 6 2 1 –Sample (n=679)

Chicago 54 27 27 20 18 8 7 1 * –Oversample (n=219)

f. Ability to supervise and/or leadEssential Not important


General 46 17 29 30 17 7 6 1 – –Sample (n=679)


g. Loyalty and dedication to the companyEssential Not important


General 86 53 33 11 3 1 1 – – –Sample (n=679)

Chicago 82 52 31 13 5 1 * * – –Oversample (n=219)


h. Someone you can count on in a crisisEssential Not important


General 85 54 30 11 3 1 1 * – –Sample (n=679)

Chicago 87 59 28 11 1 1 1 – – –Oversample (n=219)

i. CreativityEssential Not important


General 41 15 26 32 17 10 8 2 * –Sample (n=679)


j. Ability to get along with co-workersEssential Not important


General 90 63 27 7 3 * * * – –Sample (n=679)


k./l./m. Deleted before fielding

n. Willingness to work long hoursEssential Not important


General 46 21 26 22 19 13 8 5 – –Sample (n=679)



o. Willingness to travelEssential Not important


General 11 5 6 13 17 59 20 39 * –Sample (n=679)


p. Comfortable with nontraditional work arrangements (teams, flex-time, telecommuting, etc.)

Essential Not important


General 25 10 15 23 21 31 15 16 * –Sample (n=679)

Chicago 24 13 12 18 18 38 21 17 1 –Oversample (n=219)

q. Comfortable with non full-time employment arrangements (part-time, contract, consultant, project-by-project work)



General 20 7 13 18 19 43 19 24 1 *Sample (n=679)

Chicago 21 8 13 11 20 48 19 29 1 –Oversample (n=219)

r. Deleted before fielding

s. Having up-to-date job skillsEssential Not important


General 73 36 37 18 7 2 2 * * –Sample (n=679)



t. Willingness to learn and use new technology



General 74 37 38 16 6 4 3 1 – –Sample (n=679)

Chicago 74 40 34 19 6 1 * 1 – –Oversample (n=219)

u. Understanding of new technologyEssential Not important


General 55 19 36 26 15 3 2 2 – *Sample (n=679)


v. Willingness to try new approaches to problemsEssential Not important


General 77 32 45 17 6 * * * – *Sample (n=679)

Chicago 71 39 32 21 7 * * – – –Oversample (n=219)

w. Willingness to participate in training or retraining programsEssential Not important


General 75 42 33 16 7 2 1 1 * *Sample (n=679)

Chicago 71 40 31 21 6 1 1 * – –Oversample (n=219)


7. Now, I’m going to read you a list of different types of job applicants. As I read each type of appli-cant, based on your experience, please tell me whether it’s easier or more difficult to find that typeof applicant today, compared to five years ago. For example, compared to five years ago, is it easieror more difficult today to find (INSERT). GET ANSWER, IF EASIER, THEN ASK: Is it somewhat easieror much easier. IF DIFFICULT, THEN ASK: Is it somewhat more difficult or much more difficult.

a. Qualified applicants for management and supervisory positions?Easier More difficult

NET Much Somewhat NET Somewhat more Much more Don’t know Refused

General 34 8 27 59 42 18 6 1Sample (n=679)

Chicago 40 11 30 52 36 16 6 1Oversample (n=219)

b. Qualified applicants for non-management and non-supervisory positions?Easier More difficult

NET Much Somewhat NET Somewhat more Much more Don’t know Refused

General 37 6 32 58 40 18 4 1Sample (n=679)

Chicago 48 12 36 46 33 14 6 *Oversample (n=219)

7a. /7b.; Management vs. Non-Management table

Easier for More difficult Easier for More difficult for Don’t know/management & for management & management/more management/ refused

non-management non-management difficult for easier for non-non-management management

General 19 41 16 16 8Sample (n=679)Chicago 27 33 12 18 10Oversample (n=219)

8. In your opinion, within the next five years, how likely is it that your company will face a shortageof qualified workers? Is it…

Likely Not likely

NET Very Somewhat NET Not too Not at all Don’t know Refused

General Sample 58 18 40 42 33 10 * –(n=679)

Chicago 48 14 34 52 38 14 – –Oversample (n=219)


Older Employees

9. Now I have some questions about employees ages 50 and older. What do you consider to be someof the advantages of employees ages 50 and older, in your company, relative to all other employ-ees in your company? [OPEN ENDED]

General Sample Chicago Oversample (n=679) (n=219)

Knowledge/Skills/Experience (NET) 70 70Experience 40 33Industry/business experience/knowledge 5 7Job/work experience/knowledge 9 10Knowledge/more knowledgeable 23 20Knowledge of company/organization/the culture (client) 5 9Skills/expertise 5 6More/broader based experience 5 6Life experience 2 4Other knowledge/skills/experience 2 2

Work Ethic (NET) 52 47Good/better attendance 8 5More punctual 2 5Motivated/industrious/desire to learn 5 6Dependability/reliability 22 20Better work habits 23 14More responsible/accountable 5 11Other work ethic 5 4

Personal Qualities (NET) 23 22Better/positive attitude/satisfied with job 2 3Flexibility/adapt to change 2 2Trustworthy 2 1Maturity/level-headed 15 14Other personal qualities 5 5

Professionalism (NET) 42 38Interpersonal skills 4 4Leadership ability 3 3Commitment/more committed (to company) 3 4Dedication/more dedicated (to job/company) 8 8Loyalty 14 7Mentoring ability 2 1Team players 1 1Stability/don’t move as much/don’t change jobs 12 11Ability to make decisions/provide solutions/handle situations 3 3Other professionalism 3 4

Nothing 3 3Other 2 1Don’t know/have no data 1 1Refused 1 1


10. What do you consider to be some of the disadvantages of employees ages 50 and older, in yourcompany, relative to all other employees in your company? [OPEN ENDED]


Health Issues (NET) 18 11Illness/declining health 3 2Health care/health issues/problems 13 9Other health issues 3 2

Inflexibility (NET) 19 21Not adaptable to change/set in their ways 14 13Unwillingness to try new things 5 8Other inflexibility 2 3

Productivity Issues (NET) 18 20Work slower/not as productive 1 1Limited physical capabilities/strength/energy 11 12Require more time off/less overtime 4 6Other productivity 2 1

Technology Issues (NET) 13 12Slow/uncomfortable with new technology 3 5Unwilling to learn new technology 3 5Lack of new technology/technical skills 6 3Other technology 1 *

Retirement Issues (NET) 8 7Retirement frame of mind/earlier retirement 3 1Close to retirement/losing them/retiring 5 3Other retirement 1 3

Cost to Company (NET) 6 6Higher health care costs/higher premiums 4 4Higher salary 1 1Other cost to company 1 1Less patient * —Possibility of their becoming caregivers/have outside family commitments 1 2Lack of motivation/initiative/complacent 3 1Poor relationships with younger co-workers/intolerance 2 2

None 24 30Other 5 7Don’t know 5 5Refused 1 1


11. Based on your experience and knowledge in the field, please evaluate employees ages 50 andolder on each of the qualities I read. Again, please use a scale of 1 to 6, but this time, a rating of6 means excellent, 1 means poor, and the other numbers represent levels in between. Howwould you evaluate employees ages 50 and older on (INSERT)?

a. Individual initiative

Top 2 box Bottom 2 box

NET 6 Excellent 5 4 3 NET 2 1 Poor Don’t know Refused

General Sample 64 21 43 22 10 2 1 1 1 1(n=679)

Chicago 60 27 33 25 11 2 1 1 1 *Oversample (n=219)

b. Commitment to doing quality workTop 2 box Bottom 2 box


General Sample 91 51 39 5 2 * – * 1 1(n=679)

Chicago 92 51 41 5 2 * – * 1 *Oversample (n=219)

c. Desire to get aheadTop 2 box Bottom 2 box


General Sample 31 7 24 32 24 12 10 2 1 1(n=679)


d. Willingness to be flexible about doing different tasksTop 2 box Bottom 2 box


General Sample 48 13 35 27 17 6 5 1 1 1(n=679)

Chicago 45 21 24 28 19 6 6 * 1 *Oversample (n=219)


Question 11. — continued

e. Experience in the job and/or industryTop 2 box Bottom 2 box


General Sample 86 45 41 9 2 1 * * 1 1(n=679)

Chicago 83 53 30 11 3 1 – 1 1 *Oversample (n=219)

f. Ability to supervise and/or leadTop 2 box Bottom 2 box


General Sample 65 24 42 24 6 2 2 * 2 1(n=679)

Chicago 63 31 32 27 7 2 2 – 1 *Oversample (n=219)

g. Loyalty and dedication to the companyTop 2 box Bottom 2 box


General Sample 89 58 31 7 2 1 1 * 1 *(n=679)


h. Someone you can count on in a crisisTop 2 box Bottom 2 box

NET 6 Excellent 5 4 3 NET 2 1 Poor Don’t Know Refused

General Sample 86 48 38 10 1 1 1 * 1 1(n=679)



i. CreativityTop 2 box Bottom 2 box


General Sample 36 7 29 35 21 6 5 1 2 1(n=679)


j. Ability to get along with co-workersTop 2 box Bottom 2 box


General Sample 78 35 43 16 4 1 1 * 1 1(n=679)


k./l./m. Deleted before fielding

n. Willingness to work long hoursTop 2 box Bottom 2 box


General Sample 52 19 33 22 15 8 6 2 1 1(n=679)

Chicago 55 23 32 17 18 8 6 2 1 1Oversample (n=219)

o. Willingness to travelTop 2 box Bottom 2 box


General Sample 21 7 14 22 21 24 12 13 9 2(n=679)




p. Comfortable with nontraditional work arrangements (teams, flex-time, telecommuting, etc.)Top 2 box Bottom 2 box


General Sample 26 9 17 27 24 17 13 4 5 1(n=679)


q. Comfortable with non full-time employment arrangements (part-time, contract,consultant, project-by-project work)

Top 2 box Bottom 2 box


General Sample 38 17 21 19 14 17 10 7 10 1(n=679)


r. Deleted before fielding

s. Having up-to-date job skillsTop 2 box Bottom 2 box


General Sample 43 13 30 38 14 3 3 1 1 1(n=679)


t. Willingness to learn and use new technologyTop 2 box Bottom 2 box


General Sample 33 6 27 34 21 10 8 2 1 1(n=679)



u. Understanding of new technologyTop 2 box Bottom 2 box


General Sample 25 5 20 35 26 13 10 3 1 1(n=679)


v. Willingness to try new approaches to problemsTop 2 box Bottom 2 box


General Sample 34 8 26 34 23 7 6 1 1 1(n=679)


w. Willingness to participate in training or retraining programsTop 2 box Bottom 2 box

NET 6 Excellent 5 4 3 NET 2 1 Poor Don’t Know Refused

General Sample 49 14 35 30 15 5 4 1 1 1(n=679)



12. What specific programs, if any, does your company have to attract and/or retain employees ages50 and older?


Training (NET) 5 8Training/technical programs 3 7Other training 3 5

Scheduling (NET) 4 3Flexible hours/flex time/scheduling 3 3Part-time status 1 –Other scheduling 1 –

Compensation (NET) 5 3Bonuses/bonus options 1 2Fair/competitive salary/wages 2 1Pay increases 1 1Other compensation 1 –

Incentives/Benefits (NET) 19 18Retirement (SUBNET) 9 7

Pension/pension plan 1 3401k plan 5 4Retirement program/package (unspecified) 4 3Other retirement * –

Tuition reimbursement/educational assistance 1 4Longevity pay/bonus 1 1Stock options/profit sharing 1 3Benefits/good benefits package 6 4Insurance benefits (general) 2 2Vacation package/paid time off 2 2Health care coverage/medical plans/health benefits 6 2Other incentives/benefits 4 2

Environment (NET) 6 6Positive/good work environment 2 2Equal opportunity employer * 1Programs to recruit/retain seniors 1 2Other environment 3 1

Other 1 –None/nothing specific for ages 50 and older 50 62Don’t know 22 11Refused * *


13. Here is a list of approaches that have been suggested to encourage companies to more fully utilize older employees. Please indicate how effective you believe each one would be in encour-aging your company to more fully utilize older employees—very effective, somewhat effective,not too effective, or not at all effective. How about (INSERT)?

a. Educating managers about ways to utilize older employeesEffective Not effective


General Sample 79 24 55 19 13 6 2 1(n=679)


b. Skill training for older employees Effective Not effective


General Sample 81 23 58 17 11 6 1 *(n=679)


c. Deleted before fielding

d. Part-time work arrangements without continuation of benefitsEffective Not effective


General Sample 50 13 37 46 29 17 3 1(n=679)


e. Part-time work arrangements with continuation of benefitsEffective Not effective


General Sample 78 45 33 17 7 10 4 1(n=679)



In the next two questions, we are defining older employees as those age 50 or older.


f. Tax incentives for hiring and training older employeesEffective Not effective


General Sample 70 22 48 26 14 12 3 1(n=679)


g. Phased retirement—allowing older employees to reduce their work schedules for a period of time prior to full retirement

Effective Not effective


General Sample 79 34 45 17 8 9 3 1(n=679)


h. Benefit packages targeted toward older employeesEffective Not effective


General Sample 83 41 42 14 6 9 2 1(n=679)


i. The targeted recruitment of older personsEffective Not effective


General Sample 68 14 54 28 17 10 3 1(n=679)



j. Opportunities for advancement for older employeesEffective Not effective


General Sample 69 20 49 29 20 9 1 *(n=679)


k. Increased availability of part-time work for older employeesEffective Not effective


General Sample 76 29 47 21 12 8 3 1(n=679)



14. Which, if any, of these approaches have begun to be implemented in your company, even a little?General Sample (n=679)

Yes No Don’t know Refuseda. Educating managers about ways to utilize older employees 30 69 1 *b. Skill training for older employees 48 51 * *d. Part-time work arrangements without continuation of benefits 46 53 1 *e. Part-time work arrangements with continuation of benefits 32 67 1 *f. Phased retirement—allowing older employees to reduce their

work schedules for a period of time prior to full retirement 39 61 * *g. Benefit packages targeted toward older employees 18 81 1 *h. The targeted recruitment of older persons 25 74 1 *i. Opportunities for advancement for older employees 55 44 1 1j. Increased availability of part-time work for older employees 42 57 * 1

Chicago Oversample (n=219)

Yes No Don’t know Refuseda. Educating managers about ways to utilize older employees 34 66 * –b. Skill training for older employees 53 47 – –d. Part-time work arrangements without continuation of benefits 39 57 3 –e. Part-time work arrangements with continuation of benefits 27 73 – –f. Phased retirement—allowing older employees to reduce their

work schedules for a period of time prior to full retirement 32 68 * –g. Benefit packages targeted toward older employees 16 84 – –h. The targeted recruitment of older persons 28 71 1 –i. Opportunities for advancement for older employees 53 47 * *j. Increased availability of part-time work for older employees 40 60 * –


15. After I read each statement below, please indicate whether you strongly agree, somewhat agree,somewhat disagree, or strongly disagree. How about (INSERT)?

a. Within the past five years, the average retirement age at my company has increased.Agree Disagree

NET Strongly Somewhat NET Somewhat Strongly Don’t know Refused

General Sample 50 24 26 43 23 20 7 1(n=679)


b. Within the past five years, an increasing number of my company’s retired employeeshave returned to work.

Agree Disagree

NET Strongly Somewhat NET Somewhat Strongly Don’t know Refused

General Sample 34 9 25 60 22 37 6 *(n=679)


Firmographics and Respondent Demographics

16. What is the annual gross sales volume or revenue for your company?<$5M $5M–$24M $25M–$99M $100M–$499M $500M+ Don’t know Refused

General 16 32 22 7 4 12 8Sample (n=679)

Chicago 17 28 25 9 6 9 6Oversample (n=219)

17. Which of the following best describes your company?Nonprofit Publicly traded, Privately held, Don’t know Refused

organization for profit company for profit companyGeneral 22 10 67 * 1Sample (n=679)Chicago 15 15 69 1 *Oversample (n=219)


18. In what industry or type of business is your company primarily involved?General Sample Chicago Oversample

(n=679) (n=219)Education 9 4Finance/insurance/real estate 9 13Health care 9 6Manufacturing 21 18Professional and business services (professional and technical services for others, such as legal services, marketing, advertising,consulting, bookkeeping, engineering, etc.) 5 8Retail trade 15 19Other (NET) 30 32

Agriculture/forestry/fishing 1 1Construction 7 5Information and Information Services (publishing, software andInternet publishing, motion picture and sound recording,broadcasting, Internet Service providers, telecommunications) * *Leisure and Hospitality (arts, entertainment, recreation,food services, lodging) 3 5Mining * –Transportation 4 2Utilities 1 1Wholesale trade 7 10Other or Services, other than those named above 7 9

Don’t Know – –Refused 1 *


19. What is your official job title?General Sample Chicago Oversample

(n=679) (n=219)Human Resources/Personnel (NET) 66 76

Vice President, Human Resources/Human Resources VP 7 4Vice President, Personnel/Personnel VP 1 1Personnel Director/Director, Personnel 2 *Human Resources Director/Director, Human Resources 19 25Human Resources Manager/Manager, Human Resources 25 34Personnel Manager/Manager, Personnel 5 5Other human resources/personnel 7 7

Finance (NET) 7 8CFO/Controller 5 5Other finance 2 3

Executive (NET) 8 10President/CEO 3 3COO * *VP Operations 1 1Director Operations 1 2Other director 2 1Owner 1 2Other executive * 1

Managerial (NET) 7 4Operations Manager 2 –General Manager/Store Manager 3 2Business Manager * –Office Manager 2 2Other manager 1 –

Superintendent (NET) 5 1Superintendent 5 *Assistant Superintendent 1 *

Administrative (NET) 6 1Administrator 1 *Administrative Assistant 3 –District Administrator 1 –Other administrator 1 *

Other * 1Don’t know – –Refused 1 *


20. What is your age?18–34 35–49 50–64 65+ Refused

General 14 44 34 3 4Sample (n=679)Chicago 20 41 31 6 3Oversample (n=219)

21. Respondents’ genderMale Female

General Sample (n=679) 39 61Chicago Oversample (n=219) 30 70


Appendix III: Detailed Description of Methodology

General StudyThis study of senior-level humanresources managers and executives inIllinois, Iowa, Indiana, Wisconsin, andMissouri was conducted by telephonefrom April 6, 2005 to May 23, 2005. All interviews were conducted byInternational Communications Researchusing its Computer Assisted TelephoneInterviewing (CATI) system.

The sample source was Dunn andBradstreet’s business list. Respondentswere screened to ensure that their com-panies had at least 50 employees andthat they were the senior level individualresponsible for making human resourcedecisions on behalf of their company.For the general study, a total of 679interviews were completed across thesefive states.

Large EmployersIn order to complete more interviewswith large employers than a randomsample would allow and to enablemeaningful comparisons between theresponses of larger and smaller em-ployers, employers with 500 or moreemployees were oversampled. As a resultof this oversample, the general studyincludes 201 respondents from compa-nies with at least 500 employees.Weighting was applied to the overallresults to ensure that the overall resultsdo not over-represent larger employers.

Chicago RespondentsIn addition to the interviews conductedfor the general study, companies basedin the Chicago metropolitan area wereoversampled in order to gain moreinsight into the perceptions of senior-level HR decision makers in this impor-tant business center. As a result of theChicago-area oversample, a total of 219interviews were completed with respon-dents based in Chicago.

Margin of ErrorThe margin of error for the general studyis +/- four percentage points at the 95percent confidence interval, and themargin of error for Chicago respondentsis +/- seven percentage points at the 95percent confidence interval.

WeightingThe overall results were weighted byindustry type, company size, and stateto ensure that they were representativeof the population counts in the Dunnand Bradstreet database.

For the general study and the Chicagooversample, the tables on the followingpages show the distribution of respon-dents by company size, industry, andstate. The distributions before weightingand after weighting are shown side byside for comparison.



Distribution of Respondents by Company Size, Industry, and State: General Study Unweighted (n=679) Weighted (n=699)

Company Size50–99 Employees 33% 50%100–499 Employees 37% 38%500+ Employees 30% 11%Total 100% 100%

IndustryManufacturing 19% 21%Health Care 14% 9%Professional/Business Services 14% 5%Education 11% 9%Retail 8% 15%Finance/Insurance/Real Estate 7% 9%Other 27% 30%Total 100% 100%

StateIllinois 43% 31%Indiana 15% 19%Iowa 9% 10%Wisconsin 18% 20%Missouri 16% 20%Total 100% 100%


Distribution of Respondents by Company Size and Industry: Chicago RespondentsUnweighted (n=219) Weighted (n=184)

Company Size50–99 Employees 40% 57%100–499 Employees 46% 39%500+ Employees 14% 4%Total 100% 100%

IndustryManufacturing 17% 18%Health Care 9% 6%Professional/Business Services 22% 8%Education 6% 4%Retail 10% 19%Finance/Insurance/Real Estate 11% 13%Other 26% 32%Total 100% 100%



AARP is a nonprofit, nonpartisan membership organization thathelps people 50+ have independence, choice and control in waysthat are beneficial and affordable to them and society as a whole.We produce AARP The Magazine, published bimonthly; AARPBulletin, our monthly newspaper; AARP Segunda Juventud, ourbimonthly magazine in Spanish and English; NRTA Live & Learn,our quarterly newsletter for 50+ educators; and our website,www.aarp.org. AARP Foundation is an affiliated charity that pro-vides security, protection, and empowerment to older persons inneed with support from thousands of volunteers, donors, and sponsors. We have staffed offices in all 50 states, the District ofColumbia, Puerto Rico, and the U.S. Virgin Islands.

Copyright © 2005 AARP Knowledge Management601 E Street, NW, Washington, DC 20049 http://research.aarp.orgReprinting with Permission

Documents

American Business and Older EmployeesA Focus on Midwest Employers 5 Employee Qualities Most Top Qualities of Employees Desired Overall Ages 50+ (According to HR Managers, n=679) (According